Car sales continue to rise in Europe

Vehicle registrations in Europe increased by 19 percent in June, bringing the streak of increases in vehicle sales to its 11th month. Car sales in Europe increased in June, extending the streak of growth to its 11th month, thanks to the rising demand for electric vehicles and improved parts supply. According to the European Automobile Manufacturers’ Association, new vehicle registrations increased by 19 percent to 1.27 million units. While electric vehicle sales increased by 55 percent, diesel vehicle deliveries decreased by 10 percent. Automakers continue to clear backlogs as long-standing supply shortages for critical components such as semiconductors ease. However, the outlook is also clouded by expectations that supply chain bottlenecks could return due to rising demand for electric vehicles, and that consumers may cut back on spending due to rising costs of living and slowing global growth. Buyers in Germany, Europe’s largest car market, purchased 52,988 electric vehicles in June. This figure is up 64 percent compared to the same period last year, and was also recorded as the highest figure in Europe. France also contributed to the growth in electric vehicles with 33,280 sales, while in the Netherlands, electric vehicle sales were 13,892. Including all fuel types, Volkswagen AG became the company that sold the most passenger cars in the region, making 325,612 deliveries, up 27 percent compared to the previous year. Stellantis NV's sales decreased by 2.5 percent to 210,495. Tesla Inc., which plans to increase production capacity at its factory in Germany, sold 47,606 vehicles, ahead of local brands Fiat and Citroën and more than doubled sales from a year ago.